China's largest carrier ends talks for Apple iPhone

It wouldn't be the first time a company has used the press to bolster their negotiating position. Nevertheless, after saying the "iPhone model was not suitable for China" back in November, a spokesperson for China Mobile now says they've "terminated" discussions with Apple to bring the iPhone to China. China's largest carrier gave no reasons for the decision though the fee sharing agreement is likely a contributing factor. Well Steve, there's always China Unicom.

[michas_pi @ Jan 14th 2008 3:12AM]

Seems that China Mobile wants to use all of those iPhone knockoffs instead of the iPhone.

Aren't both made in China?

[helloUser @ Jan 14th 2008 3:22AM]

Are you paranoid?

[Gorjan @ Jan 14th 2008 3:58AM]

You do know what VTEC means?

Verotoksin producing E. coli / EHEC? It gives nasty diarrhoea.

[michas_pi @ Jan 14th 2008 6:35AM]

@helloUser: I was being sarcastic. I'm sorry that you didn't catch that.

@Gorjan: I am referring to Variable Valve Timing and Lift Electronic Control which is an engine technology which makes riced out Civics go WHOOSH.

[LordFarkward @ Jan 14th 2008 3:52AM]

it's interesting how all the english version of this story has such a negative spin on it

the chinese version (i'm unsure if this is the original news piece, though) from xinhua (very respectable news paper in china) actually states in the VERY first sentence that AAPL and CMB have actually reached a preliminary agreement, and that the introduction of iphone to china is not only imminent but should be materialising soon. here's the link:
http://news.xinhuanet.com/internet/2008-01/12/content_7406144.htm

if the english versions are indeed based on this article, seems like someone is trying to falsly manipulate the market (hey, since AAPL has been down so much lately, and with macworld approaching tomorrow, why not spread some more fud to kick the share price down and pick up more cheap stocks, ai?)

[Gorjan @ Jan 14th 2008 4:00AM]

Could be, or maybe it's the general negative view the West has on everything Chinese?

[z @ Jan 14th 2008 10:33AM]

Very interesting indeed. Your explanation makes sense, and we shall hear about it tomorrow... ;)

[tamoghno @ Jan 14th 2008 4:08AM]

actually they dont need iPhone . they already have tPhone .
http://www.engadget.com/2007/06/20/keepin-it-real-fake-part-lx-iphone-clone-on-video/

[contact @ Jan 14th 2008 4:14AM]

Fully unlocked iPhone cost about $500 in China and the supply is pretty strong. Otherwise, 1.02 iPhone with "SimCard Paste" which in short does exactly the same thing will merely cost $400 or less (for the phone), plus a $10 "SimCard Paste".

The Chinese iPhone community is already so big that it becomes one of the main source for iPhone cracking.

One in five Chinese friends I know (IT professionals working in main cities like ShangHai and Beijing is using a cracked iPhone. There is no way China Mobile to secure a revenue from the Apple model. Therefore it makes perfect sense for one of the biggest monopoly in China to refuse kissing Mr. Jobs ares.

[Carl @ Jan 14th 2008 5:33AM]

I agree, when I was in Hongkong unlocked iPhones were going for under US$400 if you knew where to look, why would people bother buying into a lock-in contract when you can walk down the street and pick one up with less restrictions?

People bash MS but at least you can install whatever you want on a WinMobile based phone.

[justin @ Jan 14th 2008 11:34AM]

@ Carl

Wouldn't the cost of a trip to Hong Kong far exceed cost of a trip to my Apple Store? And I'm an iPhone user and I'm not locked into a monthly contract. AT&T's GoPhone service is available for those who don't want a 2 year commitment. You only CHOOSE to be locked into a two year deal when it comes to the iPhone. I don't see any WinMo phones on a pay as you go plan.

[SteveMB @ Jan 14th 2008 3:19PM]

That's because Windows phones aren't made for teenagers, who are basically the only people who use pay as you go.

[skulldriveshaft @ Jan 14th 2008 4:17AM]

buy shares in companies you hate to dominate their markets, use the profits to take positions in direct competitors, as the dominant force declines, your valuations transition to the new power house :]

Anyways, Apple won't be able to keep up the pace at which handsets are updated in China, you have to update your handset EVERY year, if not EVERY update cycle to remain relevant. People in China don't react very calmly to locked hardware, especially hardware that updates and locks itself up, the rest of the world's population is much more violent when it comes to showing feelings.

I forsee Apple locations being burned, geniuses strangled, you get the picture.

[hotwings1 @ Jan 14th 2008 12:28PM]

Funny, but it's also a good move with all of those iPhone knockoffs. Even though now it gives China an even worse image for infringement because number one, every one knows about the myriad of knockoffs, and two, now they are officially refusing the actual product. Besides, Meizu should be enough to keep China's citizens happy, after all, it's not like it's an exact replica of the iPhone right? (sarcasm intended)

[sickphone @ Jan 18th 2008 10:23AM]

1st

heard of Hon Hai? (foxxcon) they apparently got the contract for building new apple stuff..ipods,itouch,iphones,

now guess what.. they are just in shenzhen :)

meizu copied iphone?read this

http://gizmodo.com/gadgets/cellphones/meizu-ceo-says-they-didnt-copy-the-iphone-that-much-236772.php

[Lee, ChihCheng @ Jan 14th 2008 8:07AM]

Nobody buy music/movie in China, so iTune is nothing.
802.11a/b/g is no legal in China, so Safari is nothing.
There are no EDGE in China, Again, Safari/Google Maps/... all WebApp in iPhone is nothing
Everybody download RMVB movie in China, iPhone can't play it.

iPhone is great,, but in china, it's just a stupid MP3+GSM Phone...

[ray @ Jan 14th 2008 9:16AM]

if you are a chinese and you live in China, you life is meaningless, you don't know what's going on around you.
1st don't say nobody
2nd China has different standards for 802.11, it's about compatibility not legality
3rd there are EDGE in China and in fact widespread everywhere
4th again don't say everybody, there are millions of sites in China for MP4 dl, you just don't know where to find them. BTW have you ever used a video converter in you life?

[Luke @ Jan 14th 2008 10:30AM]

>802.11a/b/g is no legal in China, so Safari is nothing.
We have a stupid standard in China for Wireless, but everyone use 802.11a/b/g
>There are no EDGE in China, Again, Safari/Google Maps/... all WebApp in iPhone is nothing
The only thing we don't have is 3G which (un)fortunately iPhone don't support. Again, this is because of the stupid Chinese standard.
>iPhone is great,, but in china, it's just a stupid MP3+GSM Phone...
Even so, iPhone is far batter than the stupid Samsung.

[Rhino @ Jan 15th 2008 12:14AM]

802.11a/b/g okay in China, but any legal cell phone MUST remove its 802.11x wireless function if it wants to enter the market(Ridiculous Rule)
It's true that there is EDGE, BUT it is also true that the EDGE is as slow as GPRS
RMVB might not be a problem, if iPhone users become a big group, there will be NICE guy who is willing to convert everything into mp4...

[Mike @ Jan 15th 2008 2:05AM]

@Ray:
Wow, it's pretty rare to see someone so bigoted and close-minded in this day and age. Guess it's inevitable given the size of the Internet's population.

You have no idea what you're talking about. Being a Chinese American who worked in the technology sector in Beijing for 3 years, including 1 year on a PMP/phone product, I can tell you that Lee Chih Cheng is basically correct in his general assessment. Here's why:

1. As far as it matters, NO ONE is buying legal music/movies in China. A few new computer users might get duped into paying on the online stores here and there, but they soon discover that either the contents can be found free elsewhere on the net, or their money is better spent buying illegally copied discs on the street, which have newer content anyway. Besides, a lot of the paid sites in China actually upload videos from pirated discs. It's a sad state of affairs, that's true, but companies are starting to experiment with new ways of making money off content, in many cases more aggressively and innovatively than media companies in the West that are tied down by traditional distribution models. Many of these methods are starting to work out, and it's very likely that China will lead the world in developing a new method for profitable intellectual property distribution, exactly due to the fact that its new economy grew up on what is termed "piracy" in the traditional sense. For example, while I was there, movie companies were starting to sell legitimate copies of their movies in stores for slightly more expensive than pirated copies, almost right after a movie's theatrical release. This beat the widespread availability of pirated copies by a few days (being so institutionalized, pirated discs also have a sophisticated distribution system), or at least are released with them simultaneously, and provide a guaranteed picture quality (many pirated movies are cam quality) for a marginally more expensive price. Another thing that we were starting to see was the widespread adoption of ad-supported, streamed full-length movies and TV shows on legitimate websites (e.g. those that are the Chinese equivalent of Yahoo).

2. 802.11 is not nearly as widespread in China as it is in the West, part of it may have to do with the government's stubborn resistance to adopting international standards of wireless encryption, but it also has to do with practicality. Most people do not yet have multiple computers in their homes, and city-dwellers, those who are economically well-off enough to buy computers, do not live in apartments large enough to need WiFi. Businesses are starting to adopt it gradually, especially in large corporations such as the one I worked in, but it is fairly rare considering the size of the computer-using population. The important point, when it comes to iPhones though, is the lack of free (or even paid-for) hotspots when one is on the road away from the office. Highly-Westernized / developed places like Shanghai don't count, since the WiFi user populations there aren't big enough to be considered significant.

3. Edge, while it exists, is again not prevalent enough for it to matter. For example, Beijing didn't have live Edge service as of Summer 07. The telecoms are not pushing for its adaption, because they're in the process of / waiting for license approvals for upgrading to 3G.

4. Everybody who uses computers download RMVB format movies in China. It is the dominant standard in China's online community (due at least in part to the efforts of Real Media), and it is the sole reason why companies such as Nvidia are adding RMVB decoding to media chips set to release in China. I know, because I've personally talked to representatives from Nvidia, Freescale, ARM, and others when we considered using their chips in our product.

5. People who own personal media players are all very familiar with video conversion software. They have to use them because a RMVB-capable PMP with a good price still do not exist in the market. However, those are in the pipelines of several major manufacturers, and thanks to the efforts of chip makers mentioned above, they should start appearing in the market as of this writing.

6. Most truly savvy consumers of technology in China will recognize that the iPhone presents little advantage in most of its core functions, (i.e. digital music and video playback, anywhere fast Internet browsing, phone) since devices half as expensive can fulfill all of those needs much better for them. However, it is still very understandable as to why it is selling so well in the black market. Chinese consumers, like others elsewhere in the world, recognize the appealing hardware design and software interface, as well as the status symbol that it is. The reason that it won't sell well as a mass-marketed product, beyond what's mentioned in the paragraphs above, is that that at $500, it's exactly twice as much as the price point at which Chinese consumers start to consider a personal electronic product to be in the "luxury class".


7. You, sir, by displaying your lack of even a willingness to understand the world, showed that your life means less to this world than even the lowest-paid factory workers in China. At least they are contributing something that others find useful.



Another flagrant racist here is Derek below. It's surprising that anti-Asian racism is not nearly as taboo as anti-black racism. Perhaps not so surprising given the amount of anti-prejudice education based on blacks in the schools and in entertainment. Just goes to show you that for a lot of people, being polite to someone of another race is only the result of force-fed social conventions, actions that barely cover the unevolved creatures hiding behind.

Please, reply, and show us what you truly are.

[alphaod @ Jan 14th 2008 12:57PM]

Coming from an avid phone user (and previous owner), I don't think the iPhone is a good phone.

[Derek @ Jan 14th 2008 5:55PM]

I love reading Chine people arguing with one another. How funny. Sizchuan flied lice betta then Hong Kong flied lice.....

[Rhino @ Jan 15th 2008 12:22AM]

There is no chance for China Unicom.
If they get the iPhone, what China Mobile will do is simply decrease the price of its plan and increase (significantly) the price of communicate with China Unicom(e.g. sms in china is 0.1 RMB for each if you talk within your network and you can enjoy very nice discount if you use a sms plan/bundle. At the same time, if you sms your friends who is in China Unicom the price is 0.15 RMB and is definitely not allowed to be included in your sms plan or bundle). Then all the China Unicom user will be forced by his/her friends back to China Mobile. That's the way China Mobile earn 2B RMB everyday.

[chengdude @ Jan 15th 2008 2:57AM]

5. People who own personal media players are all very familiar with video conversion software. They have to use them because a RMVB-capable PMP with a good price still do not exist in the market.

Actually, they do. RM/RMVB/FLV capable players are pretty much mandatory as of mid- to late 2007. Oppo, Onda, RAmos, Ainol, and others already have successful products out. I assume the newest Teclast players will have it when they appear. Rockchip and Ingenic are the Chinese companies with chips that support these formats. ADI Blackfin is another (used by Oppo) but probably will lose out to cheaper Chinese rivals.

[Mike @ Jan 16th 2008 7:31PM]

Glad to hear that. I left China around mid-2007, and I haven't kept up-to-date after that. While I was there, the only player that was capable of playing RMVB files fluidly was a model from Aigo, which our product manager worked on before coming to our company. That player didn't sell to well due to its high price and a couple of design flaws. It's good to know that there are more out there right now, which I guess would bring down the prices.

[chengdude @ Jan 15th 2008 3:02AM]

Forgot to mention that the much-anticipated Meizu M8 will have its WiFi disabled (via software patch) for the Chinese market for reasons given above. Will be part of the feature set in other markets, though. This from head honcho "J Wong".

[crumcon @ Jan 15th 2008 5:41AM]

Why the hell you need iphone when you have tphone????

in specs comparison:

tphone >>>>>>>>>>>>>>> iphone



http://www.engadget.com/2007/06/20/keepin-it-real-fake-part-lx-iphone-clone-on-video/